Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
% E7 ~  U2 y3 C1 R8 ?- m/ r, @" i! ?) uexpect much from Crude Oil producers and future is not with the
* ]5 z* q, J  I* {: Fcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
; [! f4 X% {" _8 |7 ucrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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0 X$ u9 K! g6 d- R/ b2 j3 L! I4 BRecently OPEC reduced crude oil production twice over just a few
& A4 m# F2 C/ P8 f$ E: g4 _6 Gmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
1 |* Z/ c4 V; M7 ZA year ago these things would have spiked the price of crude oil by at
0 e) w# T; T, ^" u3 q* Nleast $50.00 per barrel. Today, oil price declined by a record amount.
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. Y! K% T! P; LThere are several reasons the price of oil is decreasing in the face
2 }; L2 o. s' T% q4 Oof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
7 Y8 g$ _7 [0 _in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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- T$ m/ h  u8 T% G1 R2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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$ ^9 R7 \) c/ B" J% E: \; P1 X' t3. New methods of injecting CO2 and surfactants into oil wells is
( Z8 e9 {6 v+ j: w. g2 h2 D0 f2 ]being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
' k9 O3 u" l# G1 {. _fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
! K$ v- ^6 |4 ?% C* X4 _+ @8 j# Lracing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
& h: r) @' L, o; ]3 f" Xare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
1 L$ s1 d5 K: |5 F, X2 v" Aproducing 30,000 gallons of bio-diesel per day from pork fat.
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0 B+ `) U9 y- t0 n6. There are 99 nuclear reactors in various stages of planning and
/ t4 h9 ]# P6 z, _construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


( x4 t; f9 o9 l" ~9 q6 \7. Every company in any form of transportaion business is replacing
! G1 B* Y7 Z0 w4 g% Holder equipment such as trucks, airplanes, train engines, ships, etc.
1 {6 x# h5 Z2 ~5 \0 Hwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
  [( r- E5 A( Iequipment.
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; o$ c5 Y0 |" R! J* M2 ^: w* qAirlines are flying airplanes with bio-fuel. They are finding the bio-
6 I( `0 n3 d+ @. b5 Zfuel is cleaner and performs better than jet fuel.

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+ j; y& b/ A# A1 @; f8. Cities and counties throughout the US are selling the rights to
- e6 j1 W3 e6 V) zcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
! h3 o( e; ~' Q8 ysource. Three new wind turbines are being erected every day in the US.
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/ c* _4 N9 ]5 ]Each of the above by itself will not make a large difference in the
0 a6 x+ r$ p) G: \1 X* cprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
" X. Z( H" Y0 F; I5 M; M$ V$ H; mto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


+ r, K9 g' \( x8 C5 R* h6 @The above articles are from WSJ .............PUBLISHED ON 9TH JAN
$ n/ \7 z/ M, I. l9 x2009 ... FYI-Only